Posts Tagged ‘S-1566’

Senators Ray Lesniak and Barbara Buono have introduced legislation (S-1566) to transform foreclosed homes into affordable housing. The bill would create the New Jersey Foreclosure Relief Corporation and would allow municipalities to buy foreclosed houses through the state’s $268 million affordable housing trust fund, and thereby earn two-for-one credit toward their affordable housing obligations. If municipalities decide not to buy the vacant homes, the Corporation would be able to purchase them through federal and state financing sources and deed restrict them as affordable housing for three decades. The corporation could also issue bonds to buy and sell vacant foreclosed houses with the goal of selling them at market rates. Assemblyman Jerry Green is expected to introduce the Assembly version of the measure, which Lesniak says will create more than 10,000 new affordable homes: “It does not address the ongoing complex, incomprehensible and so far insolvable obligations of municipalities, but it will make those obligations more readily attainable,” he said. S-1566 was released unanimously by the Senate Economic Growth Committee on Thursday.